All affiliates of Daechang Group — including Daechang, Taewoo and Essen Tech, which operate in copper alloy manufacturing and refrigeration and air-conditioning components — turned a profit in the first half of this year. As a result, consolidated sales at holding company Seowon surpassed 1 trillion won ($707 million) for the first time.
Seowon said Friday that consolidated sales for the first half reached 1.09 trillion won, up 30.8 percent from the same period a year earlier.
Operating profit rose to 55 billion won, a 280.1 percent increase year on year. Net profit for the period came in at 26.48 billion won, more than 30 times the 865 million won recorded in the year-earlier period. It marked the first time Seowon's consolidated sales have exceeded 1 trillion won in a single half-year.
The company attributed the results to growth across its key affiliates. On a standalone basis, Daechang posted first-half sales and operating profit gains of 25.1 percent and 102.4 percent, respectively, from a year earlier. Taewoo grew sales by 30.6 percent while more than quadrupling its operating profit, and Essen Tech recorded increases of 18.1 percent in sales and 111.8 percent in operating profit.
Seowon's own standalone earnings, derived from its copper alloy manufacturing operations, also showed marked improvement. First-half sales on a standalone basis reached 182.15 billion won, up 32.9 percent year on year. Operating profit rose 14-fold to 8.71 billion won, and net profit for the period came in at 4.17 billion won, returning the company to the black.
"In the first half, price increases driven by rising raw materials costs and expanded sales at key affiliates translated into top-line growth," a company official said. "In the second half, we will continue to proactively manage volatility in raw materials prices and exchange rates while working to strengthen our profit-generating foundation."
freiheit@heraldcorp.com
